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A Fully Calibrated Generalized CES Programming Model of Agricultural Supply AgEcon
Merel, Pierre R.; Simon, Leo K.; Yi, Fujin.
The use of prior information on supply elasticities to calibrate programming models of agricultural supply has been advocated repeatedly in the recent literature (Heckelei and Britz 2005). Yet, Mérel and Bucaram (2009) have shown that the dual goal of calibrating such models to a reference allocation while replicating an exogenous set of supply elasticities is not always feasible. This article lays out the methodological foundation to exactly calibrate programming models of agricultural supply using generalized CES production functions. We formally derive the necessary and sufficient conditions under which such models can be calibrated to replicate the reference allocation while displaying crop-specific supply responses that are consistent with prior...
Tipo: Conference Paper or Presentation Palavras-chave: Positive mathematical programming; Generalized CES; Supply elasticities; Crop Production/Industries; Production Economics.
Ano: 2010 URL: http://purl.umn.edu/60906
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